> That argument flies in the face of basic economics.

The first think any economist will tell you about the foundational rationale of basic economics is it's inability to explain the discrepancy between behavior as predicted by basic economics and behavior as carried out by human beings in the actual real world.

The hard truth that I, a human, do not behave rationally and in my own best interest at all time, or at least in those situations in which the risk or benefit to myself is the greatest, is a hard one to swallow, and many people are innately unable to even consider swallowing that, and as a result, to maintain their own illusion of rationality, they must take the stance that humans are as a rule, rational and therefore will act rationally and in their own best interest, if nothing else, as a preemptive defense against the question "if everyone around you is irrational, then what's the chance that you're the only rational one?"